What’s the best approach for raising rent for a reliable tenant?

Reply to the comment left by Tim Rogers at 01/08/2024 - 08:52You’re 100% incorrect. The inflation was caused by the Government locking everybody down in 2020/2021 and printing money which they gave to people to stay off work and sit at home watching Netflix.
This unprecedented increase in the money supply caused gas prices to rocket at the start of 2021 and throughout that year. Resulting in 26 U.K. energy companies going bust in November 2021. Inflation increased hugely during 2021 with the Bank Of England telling us that it was just temporary and so they kept the base rate at 0.1% until December 2021 when it was raised by 0.25%
So there was a massive increase that year in energy prices with gas going to unheard of levels and as I say 26 energy companies went bust in November 2021. Putin went into Ukraine three months later on 23rd February 2022 !!! Russia was quite happy to continue supplying gas and oil to European countries but European governments refused to take it causing a further increase to inflation which was of course well underway by then.
I don’t really want to get political on this forum it’s not the place but seeing as you started it …..there are a lot of issues that you are unaware of such as the coup in Ukraine in 2014 instigated by Victoria Nuland (US Deputy Secretary Of State at the time) and also Ukraine violating the Minsk agreements. And between 2014 and 2022 the Ukraine army shelling and killing 14,000 civilians in Eastern Ukraine and starting to cut off their water supply. Lots of other stuff which I won’t go into here as I’ve said enough….. information that is being deliberately kept from you by The Telegraph, Sky News and the BBC etc.

Reply to the comment left by Chris Mills at 31/07/2024 - 14:18You did what!?
Wow.
You have no idea what inflation will do over 5 years, as the value of your rent reduces in real terms.
You need the flexibility to increase prices annually, where it is justified.

Reply to the comment left by Dylan Morris at 01/08/2024 - 10:27I don't doubt that other factors influenced things, but Russia invaded Ukraine on 24th Feb 2022.
The following are the BOE changes.
2022 3 Feb 0.5000
17 Mar 0.7500
5 May 1.0000
16 Jun 1.2500
4 Aug 1.7500
22 Sep 2.2500
3 Nov 3.0000
15 Dec 3.5000
2023 2 Feb 4.0000
23 Mar 4.2500
11 May 4.5000
22 Jun 5.0000
3 Aug 5.2500
2024 1 Aug 5.0000
As for the reminder of your comments, opinions vary, so lets just leave it at that.

Reply to the comment left by Tim Rogers at 01/08/2024 - 20:56“The sole cause of that is Mr Putin’s actions”
“I don’t doubt that other factors influenced things”.
Make your mind up !! 😂😂

Reply to the comment left by Dylan Morris at 01/08/2024 - 10:27
It wasn't caused by the government locking everyone down. It was caused by a global pandemic. Our government acted in the same fashion as pretty much all governments, of which most find themselves in the same position. What did I do during lock down ? Bought two dilapidated houses, refurbished them and I'm getting just under £40k a year in rent off them. Everyone has excuses why things aren't going well. Always a solution to a problem. So, with these rather pathetic headlines of stockmarket falls for Friday, my response was... I'll have some of that thank you and did some buying. I'm just waiting for a nice crash. And the awful situation in Ukraine. I've housed a lovely Ukrainian family for over a year now. They were also clued up enough to inform me of the £3k bonus I got for letting to them. I let to them because they were in an awful situation, looks like Karma gave me a back hander.

Reply to the comment left by Tim Rogers at 01/08/2024 - 20:56
All still historically low. I've listed some of my purchases and the prevailing BOE rate... Anyone in the BTL market for the past 15 years has seen an un natural set of financial events that they believe are 'normal'. Which is also why I never stretched myself financially.

2017 5.0
2015 5.0
2014 5.0
2005 4.5
2000 6.0
1989 14.88
1998 7.25
2002 4.00
1999 5.5
2021 0.50
2015 0.50
2018 0.75
2020 0.25
2020 0.25

Hi All,

I have 8 rental properties that I rent out at market rates, My tenants know that I will review their rent yearly, and I increase their rent each year by CPI. Should the very unlikely happen and we experience negative inflation then I would decrease the rents accordingly. I believe this to be the only fair way. Why keep your rents at below market rates just to keep a tenant, where are they going to go? this is just giving your money away and making it harder for you to stay in the PRS. I, like most landlords, keep all my properties in an excellent state of repair and if a maintenance complaint/issue is reported I investigate and sort it out as quickly as possible. All my properties have an EPC rating of C. I haven't had a tenant leave for over 5 years, and all tenants express how happy they are with me as their landlord (at least that's what they say lol). I just found out that a colleague was renting an £800pcm market-rated property at £375pcm and was worrying about their increase of £50pcm due to the tenant complaining about it. even after having the market value/rate explained to him, I told her that if he were my tenant and the tenant complained further then I would evict the tenant, and re-market or sell the property (I would do that anyway). I cannot see why landlords would want to rent out their properties at 50% below market value or even 10% below market value, it makes no sense to me, it is hard enough to be a landlord as it is, with the government always on our backs, without stabbing ourselves in the foot as well. If rents are not at market rates now, you will soon be unable to do anything about it when Reeves, Rayner & Co. get started. Then your 10% may very well make the difference between making a profit or a loss, and you will have no exit available to you apart from gifting the govt a huge chunk of your property.

Reply to the comment left by GARY RIVETT at 03/08/2024 - 10:07
I used to 'help out the tenants' but chucked that in 3 years ago. I now have a decent live style I'm not dealing with bottom feeders who scrape to pay the rent and give excuses. Sure you are helping them, but all the do is spend the excess on themselves whilst you subsidise there lifestyle. Ok, I do have one tenants who's paying 15% BMV but she's got a lovely dog. I did chat about a rent increase found out she'd had illness, out of work ect ( I know a tenant who lies ) and instead I dropped it a bit for her. She's aware she's on a good deal. Always pays her rent, so one out of a few works for me. At least she is genuinely grateful of the assistance. I had one tenant 3 years ago paying a lot under the going rate and was complaining to me about how much she was paying to help her daughter out to pay her rent ( she wanted her own place ), it was about the same as what her rent was under.... That's when I went, screw this.

Reply to the comment left by Tim Rogers at 01/08/2024 - 08:52
Add the COVID pandemic to Putin and that’s exactly why the World economy is where it is.

No government was ready for either. Don’t expect Putin saw the economic sanctions reaction to his attempt at invasion too.

Reply to the comment left by Dylan Morris at 01/08/2024 - 10:27
Sorry but rubbish.